04012008 Regular Meeting - Laserfiche WebLink

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ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES The City's elected and appointed officials considered many factors when setting the fiscal year 2007 budget, tax rates, and fees that will be charged. One of these factors is the improving economy. As a result of the financial challenges facing all municipalities, the City set three goals to maintain its financial stability, a lean organization, a competitively paid staff and investment in capital outlay. These goals were taken into account when adopting the operating budget for fiscal year 2008. The total 2007- 08 combined budget appropriation is $136.4 million. This represents an increase of $18.9 million or 16.09% over the 2006 -07 budget. The increase in the annual budget is largely attributed to investments in capital projects as well as the dramatic increases in the costs of fuel and power generation caused by the increasing price of oil internationally. The General Fund's largest single revenue source is sales taxes. The City collects a 1.5 -cent sales tax on all taxable goods in the City. Sales tax revenue for FY 2008 is budgeted at $16.7 million. The property tax rate for FY 2008 is $0.534 per $100 valuation. Of this tax rate, $37.83% or $0.2006 is used for operations and maintenance activities. The remaining 62.17% or $0.3296 is used for debt service. The operations and maintenance portion of property tax revenue for FY 2008 is estimated to be $4.3 million. The largest revenue source for the Water and Wastewater Fund is water sales, at $11.7 million. The base rate for FY 2008 is $18.98 for the first 2,000 gallons for a 5/8 " -3/4" meter in the city limits. This rate increases as the meter size increases and /or if the meter is located outside of the city limits. This rate was maintained at the same rate as last year. The second largest revenue source for the Water and Wastewater Fund is wastewater charges, at $11.1 million. The base rate for FY 2008 is $22.42 for the first 2,000 gallons. This rate was also maintained the same as the previous fiscal year. The largest revenue source for the Electric Fund is power sales, at $50.54 million. The base charge for FY 2008 is $8.50 /month plus $0.0190 per kwh. This rate was also maintained at the same rate as the previous fiscal year. CONTACTING THE CITY'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Finance Department, at the City of San Marcos, 630 E. Hopkins, San Marcos, TX 78666. 12